Yes, more or less. Look at it this way: M2 money supply includes M1 money supply. If you look at M2, you’d expect to see the same step-function increase becaus

Yes, more or less. Look at it this way: M2 money supply includes M1 money supply. If you look at M2, you’d expect to see the same step-function increase because it includes M1, yet we don’t see it. This step function is just an artifact of moving some things from M2 to M1, not because the government printed all of that money.